Nine out of 10 Americans surveyed by U.S. News & World Report say they want to continue living in their own homes and communities, or “age in place,” as they grow older. Yet only about 10% of homes are “aging ready,” according to the National Institutes of Health. If living independently in old age is important to you, advance planning can help you get there.
Key Factors That Influence the Cost of Aging in Place
Location Matters
The cost of aging in place depends in part on where you live. Costs vary by state, and urban areas typically have more resources for seniors than rural ones: Philadelphia, Milwaukee, Boston, Miami and New York are all in the top 10 locations for affordability when compared to the expense of assisted living in those cities.
Of course, housing is one of the largest costs for everyone. If you own your home now, can you afford to stay there? Nationally, taxes, homeowners insurance, utilities and maintenance for single-family houses average about $9,200 per year. If you live in a cold or high-cost state, however, that number could be much higher. Will you be close enough to family and friends to reap the benefits of their company and for them to assist you if needed? What about transportation if you can no longer drive?
Upgrading for Independence
Even if your current home suits you now, it likely will need some alterations to accommodate your changing needs in old age. Things like a stairlift (average $6,000) and walk-in tub (anywhere from about $4,000 to $15,000) are pricey, but even minimal changes like widening doors for wheelchair accessibility to adding grab bars and installing non-slip flooring add up quickly. Consider looking for a contractor that has the Certified Aging-in-place Specialist (CAPS) designation to give you a better idea of what you might need to do.
In-home Services
As you age, you may need help with the basics, such as bathing, dressing and preparing meals. How much help will you need? The median cost for a home health aide nationally is $33 an hour; estimating 44 hours of service per week, that adds up to about $5,800 per month.
Most states and counties have departments to assist seniors and can often refer them to the resources they need. Medicare only covers home care in very limited circumstances. Medicaid may pay for some home health care depending on what state you live in and your situation, but you will likely be required to spend down your assets (except your primary residence) to a low level to qualify. The amount of assets you can retain varies widely by state. Long-term care insurance can help protect your financial future and give you options for care outside of Medicare and Medicaid limited coverage.
Planning for Tomorrow
Start by creating a budget specifically for your golden years. You’ll have to make some assumptions, but these common expenses will give you a starting point:
Housing costs (rent or mortgage, taxes, insurance and maintenance). Home modifications. Transportation (car insurance, maintenance or car service). Medical costs. In-home assistance. Senior services. Long-term care insurance. Family-provided care.
Consult a Pro
Aging in place is about more than staying in your home, it’s about preserving independence, dignity, and peace of mind as your needs evolve. With thoughtful planning, a clear understanding of potential costs, and the right resources in place, it’s possible to build a strategy that supports the way you want to live, both now and in the years ahead. Taking proactive steps today can help reduce uncertainty tomorrow, and working with a trusted financial professional can bring clarity, confidence, and direction to decisions that matter most.
